Pandemic inflicts losses of up to £385m on Jet2

X The Business Desk

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Travel group, Jet2, expects a loss before foreign exchange revaluation and tax from continuing operations of up to £385m for the financial year ended 31 March 2021 as it continues to deal with the impact of travel restrictions.

It compares with Group profit before hedge ineffectiveness, foreign exchange revaluation and tax from continuing operations of £264.2m in 2020.

The listed Leeds-headquartered business says its rapid actions to mitigate the impact of the pandemic means its liquidity position remains strong.

The Group’s cash position as of 31 March 2021 comprised unaudited total cash of £1,379m and “own cash” – excluding advance customer deposits – of £1,062m (2020: £520m), an increase of 104% on the prior year end.

As previously reported, Jet2 has said it is disappointed at a lack of clarity from Government on how it intends to allow international travel to restart from mid May.

The company’s trading update today notes: “This means the impact and duration of the proposed Covid-19 travel restrictions for summer ’21 remain difficult to determine.

“Due to this continued uncertainty, we took the difficult decision to extend the suspension of our flights and holidays from 17 May up to and including 23 June, by which time we are expecting more clarity.

“Unsurprisingly given the short-term uncertainty, customers are booking significantly closer to departure for summer ’21.

“However, we continue to be encouraged by the volume of customer bookings for both winter ’21/’22 and for summer ’22, for which package holiday bookings are displaying a materially higher mix of the total.”